Ralls Corp. v. CFIUS: A New Look at Foreign Direct Investments to the US

The CFIUS process typically occurs privately and opaquely, but Ralls Corporation brought a legal challenge in federal courts resulting from an unfavorable ruling. For the first time, a United States federal court recognized standing of a foreign company in the CFIUS review process and further awarded it recognition of property rights and due process. However, significant substantive issues were left unanswered at the appeals stage, and real caveats were placed on the justiciability rights that had been granted. Before any clarifications could take place on the remand, the parties settled the suit and thereby left those issues outstanding. Though full resolution did not ultimately occur, the first and only CFIUS suit in history opened the door for future litigation and substantially strengthened investors’ rights.